BYD Drops Over 6% In Hong Kong Stock Exchange As Profit Slips Amid China's EV Price War

Hong Kong-listed shares of BYD Co. Ltd. BYDDY BYDDF dropped more than 6% following the company's second-quarter earnings call.

A Sharp Decline For BYD

The drop in share price followed BYD reporting a 30% drop in net profit of RMB 6.36 billion (approximately $891 million) at the second quarter earnings call, CNBC reported on Sunday.

In its earnings report, the company blamed intense competition in the Chinese market as a reason for its domestic sales slip. "Industry malpractices such as ‘one-price policy' and ‘excessive marketing' intensified competition," BYD said, affecting "the short-term profitability of domestic businesses."

BYD's European Surge, Rise On Global Sales Charts

The news comes as BYD's overseas sales in the European market surged over 225% with the company delivering over 13,503 units in July. BYD also recorded a 290% surge in YTD sales in Europe, delivering more than 84,000 units in the region.

BYD also topped the global EV sales charts as the company with an overall market share of 18.3%, delivering over 4.86 million NEV or New Energy Vehicle units worldwide.

BYD's Eyes European Expansion, Records Growth In India

Meanwhile, the company has set its sights on Europe as the Chinese EV giant gears up to launch two luxury-focused subsidiaries, Yangwang and Denza, in the region next year.

BYD also recorded a surge in the Indian market, surpassing its 2024 annual sales record in the country in July 2025, attributing the growth to a shift in customer perspective and dealership expansion.

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